ABERDEEN chairman Stewart Milne believes the club can be completely transformed if shareholders back a deal to wipe out their crippling £14.5million debt.

Milne believes Aberdeen can be transformed if shareholders back a deal to wipe out the £14.5m debt

The Pittodrie outfit are in talks with the owners of a Stonehaven-based civil engineering company WH Donald, who are willing to put up £9.53m to clear the Dons’ bank debt.

Another £4.42m is owed to the Stewart Milne Group and that is set to be transferred into shares that will see the company raise their shareholding from 29.9 per cent to 43 per cent, and clear any deficit.

Willie and Elaine Donald are ready to put the money up for a 20 per cent shareholding in the League Cup holders and hope to be given the green light at Monday’s annual general meeting.

Milne reckons the deal would allow the club to push ahead with plans to build a new stadium and training facilities.

He said: “The negotiations have been ongoing for a number of months now and these arrangements will, I believe, be transformational for the club.

“The club are indebted to Willie and Elaine for the role they have played in this.

“If the final steps are approved at the AGM, we will have a strong balance sheet and the debt servicing burden will be removed, allowing us to drive forward on training facilities and plans for the new stadium with much greater confidence in our ability to raise the additional investment needed.”

Donald made his offer because he wants to give something back to the north-east of Scotland.

He said: “Our family recognises that we have been fortunate to have grown our business in a city and region that has benefited from the impact of the energy sector over the last 37 years.

“We decided some time ago that we wished to give something back to the community.

“We see the football club as a vital and central part of the community, and indeed the whole north-east of Scotland, and see this investment as an excellent opportunity to deliver our objective.”

If the restructuring plans are agreed, the Aberdeen FC Community Trust will receive a sizeable shareholding.

Yesterday’s annual report revealed success on the park – with the club lifting the League Cup and finishing third in the Premiership – helped the Dons increase turnover for 2013-14 by more than £3m.

Wages climbed by £750,000 to just over £6m, mainly due to increased bonuses.

Milne added: “The period covered in this report has seen a significant change in the fortunes at the club given the team’s success in lifting the League Cup.”